History2026
Consider the following statements: I. Pali texts contain the first definite references to coins, e.g., kahapana, nikkha, kamsa, and kakanika. II. The literary evidence from Pali texts is corroborated by archaeological evidence of punch-marked coins from many sites, most of them made of silver. The above statements have been associated with which of the following?
- Emergence of urban life
- Transition to money economy
Select the answer using the code given below:
Explanation
The correct option is "Both 1 and 2" because the references to coins in Pali texts signify a shift towards a money economy, indicating a move away from barter systems towards trade facilitated by currency. This transition was essential for the emergence of urban life, as it required more complex economic interactions and the growth of markets in urban centers, leading to increased commerce and social stratification. This economic evolution is well-documented in archaeological findings of punch-marked coins, further supporting both the significance of urbanization and the development of a monetary system in ancient societies.